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Azerbaijan and Iran sign a memorandum on gas exports - UPDATED

Azerbaijan and Iran sign a memorandum on gas exports - <font color=red>UPDATED</font>

11 November 2009 14:14 (UTC +04:00)

Following the signing ceremony, SOCAR President Rovnag Abdullayev said that the agreement establishes a legal framework for SOCAR to sell natural gas to National Iranian Gas Company.

"At the initial stage, SOCAR will deliver at least 500 million cubic meters of gas to Iran a year from 2010, and the volume will be gradually increased later. Work is underway now to repair an existing pipeline to Iran. The compressor station in the border area of Astara will be upgraded," he added.

Rovnag Abdullayev noted that Azerbaijan will charge Iran a price â€œclose to the world market pricesâ€ calculated on the basis of an agreed formula.

The official agreement between the two countries will be signed by the end of this year.

Earlier, SOCAR signed a gas sale agreement with Russiaâ€™s Gazprom.

At present the country has natural gas sale agreements with Georgia, Turkey and Russia.